Forex4you Technical Analysis 03 March 2011
EUR/USD: Technical Analysis
The EUR/USD is still rallying and it will probably go a little higher perhaps to the band of resistance at the 1.3910 level. However, there is evidence of a possible decline on the horizon too. The exchange rate has reached an important resistance line at 1.3860, the move up from the Jan lows looks complete, and there is a demark sell signal. If prices drop they will probably reach the 1.3750 area initially where there is support from former lows and the trendline of the move up from the Jan lows.
GBP/USD: Technical Analysis
The "bulls" failed to hold above the key resistance at level 1.6300/20. The price is currently pulling back downwards. At the moment it resides at level 1.6260/70. Indicators suggest considering a possible reversal, which gives reasons to expect a large-scale pull back downwards. If the tested level is breached, the price may then test support at 1.6220/10 and then at 1.6140/50. If both barriers are breached, growth in this instrument will probably be over, at least for the nearest outlook. Until support 1.6260/70 is safe, there are still chances for growth to the new maximums at1.6450/80, mentioned in the previous analysis. Support 1.5910/00 breakout will indicate a reversal to the "bearish" trend.
Analysis by: Joaquin Monfort
Forex4you analyst
Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
The EUR/USD is still rallying and it will probably go a little higher perhaps to the band of resistance at the 1.3910 level. However, there is evidence of a possible decline on the horizon too. The exchange rate has reached an important resistance line at 1.3860, the move up from the Jan lows looks complete, and there is a demark sell signal. If prices drop they will probably reach the 1.3750 area initially where there is support from former lows and the trendline of the move up from the Jan lows.
GBP/USD: Technical Analysis
The "bulls" failed to hold above the key resistance at level 1.6300/20. The price is currently pulling back downwards. At the moment it resides at level 1.6260/70. Indicators suggest considering a possible reversal, which gives reasons to expect a large-scale pull back downwards. If the tested level is breached, the price may then test support at 1.6220/10 and then at 1.6140/50. If both barriers are breached, growth in this instrument will probably be over, at least for the nearest outlook. Until support 1.6260/70 is safe, there are still chances for growth to the new maximums at1.6450/80, mentioned in the previous analysis. Support 1.5910/00 breakout will indicate a reversal to the "bearish" trend.
Analysis by: Joaquin Monfort
Forex4you analyst
Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
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